Info on how and why to buy Silver and Gold

I get that this website is a little doom and gloom - to the point where it seems like some of you would actually welcome a Mad Max scenario where you could blow people's heads off without recourse - but the fact of the matter is that, unless this 2012/Elenin/Dwarf Star/Pole shift/Ascension business actually goes down, a collapse of the US dollar will not bring about a Mad Max scenario. Sure, things might get a little sketchy in terms of looting and what not for a little bit, but in this respect I think the FEMA camps/martial law/training exercises have a dual purpose at this point; disaster relief/depression bread and water camp.

Obviously none of us can predict the future. Considering we live in an age of instant communication and global trade, things might grind for 3-6 months if the world's reserve currency hyperinflates into toilet paper. Having a stockpile of food/water to last that long is probably a good idea if you are really paranoid. However a new currency, most likely backed by gold, will be implemented rapidly. If you have physical gold and silver, bought today, it will protect your purchasing power in today's dollars, before hyperinflation, THROUGH the crisis. It's really only a huge issue if you are a net saver and have a lot of wealth to protect, because right now you can hedge a lot of future purchasing power in the worst case scenario for about 200K PM in today's dollars.

reply to post by dontdrinkthewater

good points! It's as simple as this, when the shtf, WHAT WILL IT LOOK LIKE? I can't say I know, because I don't. I do like to hedge my bets though.
Here's another reason: You owe a debt (it won't go away, and you might end up breaking big rocks into little ones if you can't pay...they have talked about it) the dollar will continue to be devalued, BUT you took some of those now worthless pieces of paper and bought metal that retained value. At this point you can pay off the debt with that metal. EX: You owe $7,000...Silver is (now) $1,000 an ounce....you pay off the debt with 7 ounces of Silver which at this point in time (the present) is worth about $300. So....what do you do?
It's either that or go to a work camp.

April 11th 2011 post by boncho

 

What about Palladium and Yttrium? Seem like a way better play don't they?

Gold and Silver are horrible investments because everyone is flocking to them right now. And shucksters are marketing them beyond belief. Just like you are by posting this thread.

Gold and Silver, bubble, bubble, bubble....

Anytime someone wants you to buy something, it is usually a red flag.

Hmm, I wonder if anyone took my advice back in April?

Originally posted by boncho
Hmm, I wonder if anyone took my advice back in April?

Your recommendation to buy Palladium and Yttrium ? I sincerely hope not.

Using the daily time scale [closing basis] Gold just finished the week @ $1540...down 1.6% from the April high of $1565.70.

By comparison, from the April high of $799, physical Palladium closed Friday at $744... down 6.5%. Likewise, the Palladium ETF PALL which tracks the price of the underlying metal also shows a loss of 6.5% from April.

Since strategic rare earth elements aren't sold on the commodities exchange [try calling your broker and tell him you're looking to take delivery on a few tonnes of Yttrium ] investors seeking exposure to Yttrium are limited to buying shares in rare earth etfs like Market Vectors Rare Earths/Strategic Metals ETF...down 18% from the April high, or shares in the speculative miners that produce them like the leading US REE company Molycorp Inc...down 35% - or Canadian based companies like Rare Element Resources Ltd down 26%, and Quest Rare Minerals Ltd down 40%

Got Gold ?

reply to post by OBE1


Well, seems you helped my put my foot in my big mouth there doesn't it?

Thanks for the info.

reply to post by boncho


No biggie boncho. I doubt anyone traded that advice, and you probably noticed that I didn't mention Silver still down 25% from the April high on a closing basis. The collapse in Silver was predictable. Emotionally driven runs like that are really the enemy of long term investors, especially those buying near the top. Parabolic moves only benefit the nimble trader. Nimble trader = a guy sitting at his chart station wearing leotards and ballet slippers

GL

So if the situation in Cypress and now NZ are any indication of what is to come for the rest of us, then my question is what will happen to the price of metals such as G@S in the short term after an economic collapse?

Will they drop to unheard of lows at the beginning? I am thinking that will be the case to weed out the poor who will use it to buy basics.

Originally posted by Tygart
I would take all your gold and silver and buy food, seeds, fuel and survival gear.
If something bad was to happen in the world, what am I going to with gold and silver, I can't eat it, can't use it to drive the car.

I don't see how gold will be worth anything compared to food.

Precious metals are for well AFTER the crash event and the recovery is underway. Not for the time WHILE the event is in progress. After the event, all your money in electronic format will be gone.

You must maintain a years worth of food, water, ammo, fuels, anti-biotics, cleaning solutions and compounds, medicines and medical supplies, etc for WHILE the event is occurring. The precious metals are NOT to be used for barter nor acquisition of survival supplies or tools.

Barter with tobacco, grain alcohol, .22LR, heirloom seeds.

reply to post by tkwasny


You are right, so many of us at this point may have a few coins in reserve, so selling those now to buy survival needs? It is so messed up when you live paycheck to paycheck or like me living on limited foodstamps that are not enough to feed the family anymore due to inflation, let alone put back a can or two to save for later.

It is stupid to not pay your bills to save for something that may or may not come before they come for your electric, phone, or anything else including your children if you fail on any of your bills and lose power.

Insurance eats me alive, power bills have doubled this year even though I have all energy efficient appliances. At one point i could save and put back, but those reserves are completely gone now.

I could sell the little precious metals I have on hand, but then they wont buy enough for a years supply of necessities.

What to do?

i've been doing a lil of all of it.

I have not bought gold as of yet though, simply because of its high price, and
silver if it goes up stands a chance to make a much better profit return.

But every month, i pick up a few grams of silver, Grams not ounces, simply because
grams would make much easier currency than a ounce or larger, So i swing by Ebay
yup, ebay once a month and find a good deal on little gram's of silver and buy it, and
when it shows up, stick it with the rest.

Sure its not going to be any huge amount, or anything that is going to make me rich, but
in a situation gone bad, it's some bartering power, if metals are still being used.

I also stock up on the ammo and seeds and other items every month as well.
Trying to cover all bases, i may not have a wealthy load of stuff stashed, but in
a time when things to go crap, i have the diversity to survive and provide for my family,
one way or the other.

Invest in toilet paper.....

Everyone is going to need it when SHTF, lol

You can't eat gold, you can't eat paintings, vintage cars, antique furniture, rare collectables or anything considered saving wealth. All of these things are worthless compared to WATER. I want my breakfast cooked by the burning embers of the Mona Lisa. Hey Mad Max, pass the salt.